Related Stories

The housing market may be strengthening, and the steady mortgage rate situation could be a major helper in this situation.

There was a slight decline in the 30-year fixed-rate mortgage average as it posted 4.13 percent during the week ending July 17, 2014, according to a report from the Primary Mortgage Market Survey from Freddie Mac. One week earlier, the figure was 4.15 percent. A year earlier, the level reached 4.37 percent.

Another minor drop occurred for the 15-year FRM, as it dropped to an average of 3.23 percent in the latest reading, slightly lower than the previous level of 3.24 percent, the report showed. Both figures were well below the year-ago average, which was 3.41 percent.

"Mortgage rates were little changed amid a week of light economic reports," said Frank Nothaft, vice president and chief economist at Freddie Mac. "Of the few releases, industrial production rose by 0.2 percent in June, below the market consensus forecast. Also, the producer price index for final demand rose 0.4 percent in June, rebounding from a 0.2 percent decline the prior month."

Declines also occurred in the adjustable-rate mortgage measurements. The report explained that the five-year Treasury-indexed hybrid ARM posted an average of 2.97 percent in the most recent reading, a drop from the previous level of 2.99 percent. It also was down from 12 months ago, when the average was 3.17 percent.

For the one-year Treasury-indexed ARM, the averaged slid to 2.39 percent from one week earlier when it was 2.4 percent, the report added. A year ago, the level was 2.66 percent.

Mortgage applications fall
Even with the relatively stable mortgage rate situation, there still was a decline in residential mortgage applications. According to the Weekly Mortgage Applications Survey, overall home loan applications fell 3.6 percent during the week ending July 11, 2014 compared to one week earlier. When the figure was unadjusted, it actually rose 20 percent week-over-week. The Purchase Index fell 8 percent week-over-week.

Refinances had a mixed bag for the week. The report showed that the Refinance Index slid 0.1 percent during the latest reading. However, the refinance share of mortgage activity improved to 54 percent of all applications, slightly higher than one week earlier, when the figure was 52 percent. There was no change in the adjustable-rate mortgage share, as it posted 8 percent again.

Related Stories

The credit situation for consumers made some progress during the early part of 2014, which may mean that the economy is gaining strength.

Overall consumer credit defaults dropped to 1.02 percent in June, a decline from May's level of 1.04 percent and June 2013, when it was 1.34 percent, according to the Consumer Credit Default Indices completed jointly between Standard and Poor's and Experian. This was the lowest level the figure reached in the 10-year history of the measurement.

"Consumer credit default rates continue to drift lower and have reached a historical low," said David Blitzer, managing director and chairman of the index committee for S&P Dow Jones Indices. "Recent economic reports are encouraging with the unemployment rate now at a six year low and strong job creation in recent months. The continued declines in consumer default rates confirm other indicators of an improving economy. Credit standards for mortgage loans continue to be somewhat restrictive and may be contributing to low first mortgage default rates."

The credit default rate for bank cards was 3.02 percent in June, slightly higher than the previous month's level of 2.97 percent, the report explained. However, this was still notably lower than one year ago when it was 3.41 percent.

For first mortgages, the figure was 0.89 percent, down from both May's 0.92 percent and June 2013, when it was 1.23 percent, the report showed. The second mortgage default rate did not change month-over-month, posting a 0.57 percent. However, it was slightly higher than one year ago, when it was 0.54 percent.

Young people still concerned about finances
While some credit conditions are improving, people are still worried about their personal finance situations. According to a report from Wells Fargo, more than 40 percent of millennials are concerned about their debt levels.

"The silver lining of the recession that started over five years ago is that a majority of millennials get that saving is a necessity and even equate it with 'surviving' tough times," said Karen Wimbish, director of Retail Retirement at Wells Fargo. "But millennial women are starting out their working lives making far less than men and, as a consequence, are saving less and feeling less contentment at the start of their working lives."

A similar level noted that their debt was overwhelming them, the report added. Just 23 percent of baby boomers said the same.

Related Stories

While getting more education can be a great way for a person to put themselves in position for a job they want, many people may be feeling negative about the cost.

Less than 50 percent of Americans noted that getting a higher education is a good financial option, according to a report from Country Financial. This was notably lower than in 2008, when 81 percent felt that this investment was a good idea, and it declined for six straight years.

Nearly 80 percent of those polled felt that getting a job after college is harder now than in the past, the report noted. However, 54 percent felt it would take six months at most to land a job after getting a degree.

"Unemployment is down, but job prospects are still not what they used to be," said Joe Buhrmann, manager of financial security support at Country Financial. "So it's understandable that there's some hesitation when it comes to higher education and finding a career. Whether you take an interim position right away or wait for a job to match your skillset depends on your unique situation. What's important is planning for either situation while keeping in mind your potential starting income, impending student loans and other financial obligations."

Just 49 percent of those between the ages of 18 and 29 thought that graduates would be able to find a job within six months, the report noted. More than 30 percent noted that they would wait to find a job that is in line with their skillset.

Young people attempt to save for college
With the high costs of going to school, many Americans are looking to save money at an early age. According to a report from the College Savings Foundation, three-quarters of high school upperclassmen will try to save money for future schooling.

"This generation of students was born at the inception of 529 college savings plans," said Roger Michaud, chair of CSF. "It's exciting to see their enthusiasm as well as their parent's enthusiasm for saving early and strategically."

More than 50 percent of those polled said that they would get a job to save properly for college, the report added. In 2013, just 46 percent made the same efforts to save for their higher education costs.

Related Stories

Getting the right ideas for savings and budgeting can be hard for many individuals, and mortgage payments may be adversely affected due to recent trends.

The overall level of Canadians who are trying to pay off their mortgages more quickly slid to 55 percent this year from the previous level of 68 percent, according to a report from CIBC. With this in mind, the average age that Canadians think they will retire reached 58.

"A mortgage is the largest debt most Canadians will take on in their lifetime, and being mortgage-free is an important goal for many," said Barry Gollom, vice president of secured lending and product policy at CIBC. "With current low interest rates, this may be an opportune time to make progress against your mortgage – even a few small changes can make a big difference in the length of time it takes to pay off your mortgage and the amount you pay in interest charges."

Approximately one-third of those polled picked up the rate of payments, the report showed. One year earlier, this level was at 42 percent. Another 28 percent had the overall level of payments increase, a bit lower than in 2013, when it was 30 percent. A total of 18 percent paid in a lump sum or made a prepayment, an improvement from the previous year's 15 percent.

Many Canadians trying to save
Individuals are also looking to improve their savings situations in order to better prepare for the future. According to a separate report from CIBC, nearly 60 percent of Canadians are saving for something beyond retirement. One-quarter of those polled said that this was to go on vacation, while 17 percent specified creating an emergency fund. Another 14 percent wanted to improve their home.

"Our CIBC poll shows that Canadians want to save but they don't always have a plan on how to achieve their specific savings goals," said Veni Iozzo, senior vice president of deposits and client solutions at CIBC. "Knowing what you're saving for and how much you need is a good first step, but having a financial plan to determine how much you can put aside and how often is important to help reach your goal faster."

More than half of those polled noted that they put money away routinely to prepare for these events, the report added.

Related Stories

The popularity of vehicle purchases during the summer helped a number of automakers in the United States, and Toyota was one of the most significant beneficiaries.

Overall vehicle sales for Toyota, Lexus and Scion reached 201,714 units in June, nearly 12 percent higher than the same month in 2013 when considering daily selling rates, according to a report from Toyota USA. When the figures were unadjusted, overall sales jumped 3.3 percent during that period.

Sales for the first six months of the year totaled 1.16 million units, 5.8 percent higher than the same period last year when adjusted for the daily selling rate, the report noted. The unadjusted figure rose 5.1 percent.

"Sales in the first half of 2014 indicate a steadily recovering industry, and we expect this pace to increase as we move into the second part of the year," said Bill Fay, Toyota division group vice president and general manager. "In June, Camry and Corolla posted double-digit gains as passenger cars showed renewed strength industry-wide."

The total level of Toyota division sales reached 178,196 units, 11 percent higher than June 2013 when using the daily selling rate, the report noted. This was also 2.5 percent higher than the same point last year when not considering the rate.

Car prices improve during June
The continued interest in vehicle purchases is also increasing the overall level of prices for these units, and many automakers are benefiting.

The average price for a vehicle sold in June was $32,342, 1.4 percent – or $454 – higher than during the same month in 2013, according to a report from from Kelley Blue Book. This was also $113 – or 0.4 percent – higher than May's level.

"Most major automakers showed positive growth for June 2014, as the market continues to shift toward utility vehicles this year," said Alec Gutierrez, senior analyst for Kelley Blue Book. "SUV and crossover share increased more than two percentage points in 2014 to comprise one-third of the market."

Toyota Motor Company had a transaction price average of $29,828 percent in June, 1.3 percent higher than in June of last year, when it was $29,439. However, the figure was still 1 percent lower than May 2014, as that month had an average of $30,139.

Volkswagen and General Motors had the two highest vehicle price averages during the month, the report added.

Related Stories

Many Americans are looking toward purchasing vehicles during the summer months, and many car manufacturers have positive sales levels to show this trend.

Hyundai had the most successful June sales month in history, as the company sold 67,407 units, according to a report from Hyundai Motor America. The level was 4 percent higher than June 2013, when 65,007 units were sold.

The Sonata had the most sales during the month of any vehicle under the company's umbrella, as it totaled 25,195 units, the report showed. This was notably higher than one year ago, when the figure was 19,454 units. The second highest sales came from the Elantra mode, as it posted 17,168 units sold. This was notably lower than last year, when it was 22,163 units.

"As we settle into the summer selling season, we are well-positioned with our full model line up, including the all-new 2015 Genesis sedan and Sonata, both of which experienced gains for the month, up nine percent and 30 percent, respectively," said Bob Pradzinski, vice president of national sales at Hyundai Motor America.

Vehicle prices improve in June
As sales continue to climb for many automakers, the overall price level for vehicles sold showed gains. According to a report from Kelley Blue Book, the average price for vehicles sold in June was $32,342, $454 or 1.4 percent higher than the same month in 2013. This was also a 0.4 percent rise, or $113 higher than May's figure.

"Most major automakers showed positive growth for June 2014, as the market continues to shift toward utility vehicles this year," said Alec Gutierrez, senior analyst for Kelley Blue Book. "SUV and crossover share increased more than two percentage points in 2014 to comprise one-third of the market."

Volkswagen had the highest average price for automakers during the month, as it was $38,640, 5.3 percent higher than the same month last year, when it was $36,694, the report explained. The second-highest average came from General Motors, as it was $35,738 in June, 5.4 percent higher than a year earlier.

The lowest average price for vehicles sold came from Hyundai-Kia, as the figure was $24,438, the report added. This was 2.5 percent higher than 12 months earlier, when it was $23,843, as well as nearly identical to May's average of $24,426.

The American commercial real estate market underwent a series of changes during the past few years, and with the continued advances in technology, there are a number of items that could continue to evolve in the near future.

Related Stories

The American commercial real estate market underwent a series of changes during the past few years, and with the continued advances in technology, there are a number of items that could continue to evolve in the near future.

Industrial sector growth may be heavily influenced by the boost in e-commerce during the coming years, as there could be a strong increase in the level of Class A space, according to a report from CBRE Group, Inc. Additionally, there may be a rise in speculative construction for the sector, as well as further build-to-suit projects.

"Demand from e-commerce companies has played a leading role in the recovery of the U.S. industrial real estate market over the past two years," said Scott Marshall, executive managing director for industrial services for the Americas at CBRE. "During the first quarter of 2014, virtually all U.S. markets were buoyed by strong demand for distribution space from the e-commerce sector. Supply chain demand was centered in major inland and coastal port markets, resulting in strong absorption and shrinking availability in markets such as Atlanta, Chicago, Miami and Houston."

More than 45 million square feet of speculative development already began for the sector, though it may not be enough to meet demand the report showed. Another 30 million square feet in needs from e-commerce industry members will prevent supply from getting to comfortable levels.

Architecture billings climb in May
While the commercial real estate market may be going through changes, interest in construction remains high. According to the Architecture Billings Index from the American Institute of Architects, building design requests reached positive territory in May, as the level rose to 52.6 from April's 49.6. With the figure passing 50, it entered positive territory.

"Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness," said Kermit Baker, chief economist at AIA. "However, overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the coming months."

The commercial/industrial sector was the second-highest figure recorded in May, as it posted 53.6, the report added. Multifamily residential was the only sector to perform better, with a figure of 58.2.

Related Stories

Commercial real estate conditions experienced a bit of a slow start to the year in Asia, but this may be changing as the year rolls on.

Overall transaction volume in the Asia Pacific region reached $32 billion during the second quarter, comparable to the same three-month period last year, according to a report from Jones Lang LaSalle. This helped the first half of the year reach a level that is just 8 percent lower than the same level during the first six months of 2013.

The area with the most sustained commercial real estate performer in the region was Japan, the report noted. Despite this, the country took a step back from its strong showing during the first quarter. Meanwhile, Australia, China and South Korea all had stronger second quarters than the first three months.

"Global commercial property investment markets continue to perform well spurred on by improving economic data and occupational fundamentals," said Arthur de Haast, lead director of the international capital group at JLL. "While we are approaching transactional levels last seen in 2006, the nature of this cycle is very different. The return of fully functioning debt markets over the last 12-18 months has certainly played a part in improving investor sentiment, but the real driver of these increases in transactional volumes is more and more equity targeting direct commercial real estate."

Asian office market shows improvement to begin year
One aspect of the Asian commercial market that experienced notable improvements during the early part of the year was the office sector. According to a separate report from JLL, net effective rents rose in more than half of the top markets in the region during the first three months of the year.

"Given the improvements in the region's overall leasing activity over the first quarter, we are cautiously optimistic that leasing volumes will continue to grow, anything between 10 and 15 percent for the full year," said Jane Murray, head of research for Asia Pacific at JLL. "There are, however, some downside risks to this forecast including the on-going unrest in Ukraine and possible impacts relating to the military coup in Thailand and elections in Indonesia."

The average rental growth reached 0.8 percent during the first quarter, notably improved from the 0.2 percent during the fourth quarter of last year, the report added.

Related Stories

]]>
http://www.alacrastore.com/blog/asian-cre-transactions-improve-during-2q/feed/0http://www.alacrastore.com/blog/parents-children-not-on-same-financial-page/?utm_source=rss&utm_medium=rss&utm_campaign=parents-children-not-on-same-financial-pageParents, children not on same financial pagehttp://feeds.feedblitz.com/~/69207199/0/researchrecap~Parents-children-not-on-same-financial-page/
http://www.alacrastore.com/blog/parents-children-not-on-same-financial-page/#commentsTue, 15 Jul 2014 14:19:29 +0000Carol Ann Thomashttp://www.alacrastore.com/blog/parents-children-not-on-same-financial-page/<font color="#000000" >Parents, children not on same financial page

Many individuals have different ideas on how to manage their personal finances.

Related Stories

Many individuals have different ideas on how to manage their personal finances. This may be even clearer when dealing with families, as they could have conflicting views on when to talk about financial improvement.

Nearly 65 percent of parents and their children who are adults disagree when to talk about important financial issues, according to a report from Fidelity Investments. Many parents would prefer to discuss financial tasks with their children once they reach retirement, though a majority of their children felt that it was better to do this early on, before their parents were at higher risk of health problems.

"These discussions aren't always easy, but there can be real emotional and financial consequences when they don't happen or lack sufficient depth," said John Sweeney, executive vice president of retirement and investing strategies at Fidelity. "It's absolutely critical that families take the time and break down any barriers to sort through important matters related to retirement preparedness, caregiving responsibilities, estate planning and the tax implications of an inheritance. The alternative is putting these matters off until a crisis occurs, at which point the options may be limited and there could be unintended financial repercussions."

More than 55 percent of adult children explained that their parents are concerned about financial security, the report noted. However, less than one-quarter of parents agreed with this.

Americans value retirement planning responsibility
Getting prepared for the future may take a significant amount of work over an extended period of time. According to a separate report from Fidelity Investments, a total of 91 percent of Americans noted that it is up to them to learn how to properly save and prepare for their financial futures.

"Twenty years ago, many Americans were still depending on their company's traditional pension and retiree medical plans to finance their retirement needs," said Doug Fisher, senior vice president of thought leadership and policy development for workplace investing at Fidelity Investments. "Today's employees are being asked to assume more personal responsibility for their health and retirement savings – which can be empowering, challenging and even intimidating all at the same time."

Just 4 percent of those polled felt that it was up to their employers to give them the information needed to retire, the report added. Another 4 percent felt that it was up to the government to provide them these details.

Related Stories

Further commercial real estate progress may occur in the United States during the next several months, as planned projects continue to pick up steam.

The Dodge Momentum Index rose to 128.7 in June 3.3 percent higher than May's level of 124.6, according to a report from McGraw Hill Construction. This was the third monthly gain in a row, and was significantly higher than the benchmark level of 100. The gain meant that there could be a boost in construction spending within the next year. May's level was also 22.6 percent higher than the same point in 2013.

For the commercial building measurement, the figure spiked to 144.6 in June, 8.3 percent higher than in May, when it was 133.5, the report noted. However, the institutional building reading fell to 109, 4 percent lower than May's figure of 113.5. Despite this, it was still well above the benchmark reading.

Architecture billings climb during May
While projections of future construction remained relatively positive, building design requests also showed improvement during the first half of the year. According to the Architecture Billings Index from the American Institute of Architects, building design requests rose to 52.6 in May, significantly improved from April's level of 49.6. This also helped the figure back into positive territory, as it rose higher than the benchmark of 50. When at or above that level, it notes that overall building design requests grew.

"Volatility continues to be the watchword in the design and construction markets, with firms in some regions of the country, and serving some sectors of the industry, reporting strong growth, while others are indicating continued weakness," said Kermit Baker, chief economist at AIA. "However, overall, it appears that activity has recovered from the winter slump, and design professions should see more positive than negative numbers in the coming months."

There also was a gain in the new projects inquiry index, as it improved to 63.2 in May, notably better than April's figure of 59.1, even though both were well above the threshold, the report showed. The design contracts index was also in positive territory, as it rose to 52.5.

Three of the four sectors measured were in positive range in May. The report added that multifamily residential posted a figure of 58.2, while commercial/industrial was at 53.6. Mixed practice also reached positive levels, as it was at 50.4.